Car repairs can be a significant financial burden for car owners. When unexpected breakdowns or accidents occur, many drivers wonder, “Does Car Insurance Pay For Repairs?”. The answer isn’t always straightforward and largely depends on the type of car insurance coverage you have. Understanding the nuances of different insurance types is crucial to know when your policy will cover repair costs. This article will explore how various car insurance coverages handle vehicle repairs, focusing on scenarios where your insurance steps in to help.
Types of Car Insurance and Repair Coverage
Car insurance is designed to protect you financially in various driving-related situations, but not all policies cover every type of repair. Here’s a breakdown of common coverage types and how they relate to vehicle repairs:
Collision Coverage
Collision coverage is designed to pay for damages to your vehicle if you are involved in a collision with another car or object. This type of coverage is regardless of who is at fault. If you swerve to avoid an animal and hit a tree, or if you are in an accident with another driver, collision coverage can help pay for the repairs to your car. Typically, you will need to pay a deductible, and then your insurance will cover the remaining repair costs up to your policy limits.
Comprehensive Coverage
Comprehensive coverage, also known as “other than collision” coverage, protects your car from damages not caused by collisions. This includes events like theft, vandalism, hail, fire, or natural disasters. For instance, if a tree falls on your car during a storm, or if your car is stolen and damaged, comprehensive coverage can cover the necessary repairs or replacement, again, usually after you pay a deductible.
Liability Coverage
Liability coverage is mandatory in most states and it is intended to protect others if you are at fault in an accident. It covers bodily injury and property damage that you cause to another person. Liability insurance does not pay for repairs to your vehicle. It only covers the damages to the other driver’s car and their medical expenses if you are found to be at fault.
Mechanical Breakdown Insurance (MBI)
For repairs related to mechanical failures not caused by accidents, standard car insurance policies (collision, comprehensive, liability) generally do not apply. This is where Mechanical Breakdown Insurance (MBI) comes in. MBI, sometimes referred to as car repair insurance, is an optional coverage that helps pay for repairs when your car breaks down due to mechanical or electrical failures. It’s important to note that MBI is different from a car warranty. Warranties are typically offered by car manufacturers and cover defects in workmanship or materials, usually for a limited period. MBI, on the other hand, is an insurance product that you purchase separately to cover unexpected mechanical breakdowns after your warranty expires.
Several insurance companies offer MBI, each with different terms, coverage levels, and deductibles. Let’s explore a few top providers mentioned in our ratings:
Companies Offering Mechanical Breakdown Insurance
While not all car insurance companies offer Mechanical Breakdown Insurance, some providers stand out for their comprehensive MBI plans. Here are a few top-rated companies:
Geico: Best for Budget-Conscious Drivers
Geico is recognized for its strong customer service and financial stability, holding an A++ AM Best rating. Their Mechanical Breakdown Insurance is available for new and leased vehicles that are less than 15 months old and have fewer than 15,000 miles. A key feature of Geico’s MBI is the option for renewal for up to 7 years or 100,000 miles. After a $250 deductible, Geico’s MBI covers the costs of repair, including parts and labor, in the event of a mechanical breakdown. This makes Geico a solid choice for budget-conscious drivers seeking protection against unexpected repair bills for newer vehicles.
Progressive: Best for Tech-Savvy Drivers
Progressive offers Mechanical Repair Insurance in most states (excluding Indiana and New York) and is known for its tech-forward approach to insurance. Progressive’s MBI includes attractive benefits such as $100 per day for trip interruption if a breakdown occurs far from home, and $60 per day for rental car costs, minimizing inconvenience during repairs. They offer deductible options between $100 and $500 and payment plans that can be monthly or annual. Progressive also allows you to lock in your MBI rate for up to three years, providing price stability.
American Family: Best for Family Policies
American Family Insurance partners with ForeverCar to provide mechanical breakdown insurance through vehicle service contracts. ForeverCar plans, available through American Family, function as subscription-based services, typically costing between $45 and $75 monthly. A significant advantage is the flexibility to choose any repair shop. ForeverCar plans, when obtained through American Family, cover a wide range of vehicle parts, extending up to 105,000 miles for most components and offering powertrain coverage up to 225,000 miles. Drivers with existing American Family auto policies may also receive discounts on ForeverCar plans, making it a valuable option for families insured with them.
Conclusion
So, does car insurance pay for repairs? Standard car insurance like collision, comprehensive, and liability primarily covers repairs resulting from accidents, theft, or damage from covered events. For mechanical breakdowns unrelated to these incidents, Mechanical Breakdown Insurance (MBI) is the specific coverage you need. Companies like Geico, Progressive, and American Family offer robust MBI options, each with unique benefits and coverage details. When deciding if MBI is right for you, consider the age and mileage of your vehicle, your budget for potential repairs, and compare quotes from different providers to find the best coverage for your needs. Understanding the distinctions between different types of car insurance and MBI will empower you to make informed decisions about protecting yourself from unexpected car repair expenses.
